Cheyenne, WY (PressExposure) December 05, 2009 -- To come out from the severe housing crisis, loan modification has been warmly welcome in the mortgage industry. With the help of this software, companies can properly manage the increasing number of homeowners who are looking ahead to stop foreclosures.
The loan modification software is helpful for those who are really very worried about their homes i.e. they owe a loan amount more than its worth. With this software, a monthly mortgage payment is supposed to bring down. For availing this, an individual has to meet certain constraints that are related with these loans. Firstly, a homeowner must be current on his or her mortgage.
For qualifying a loan, the homeowner should not be more than 30 days late, even one time in the last twelve months. Secondly, the monthly mortgage payment will be more than 31% of monthly "gross" income of the homeowners. Usually, gross income is larger than their take home pay. Thus, this requirement will disqualify many homeowners who are in need of help.
Good credit score is the main key to obtain loan modification. Unfortunately, homeowner who faces such problems is in need of severe money because credit score is low due to many reasons like job loss. The homeowners who have lost their job and can qualify for the 31% rule. This will be applied if the homeowner possesses great credit requirement.
In short, loan modification is a permanent change in the homeowner's loan. With the help of this, loan will be repaid depending upon the payment that a homeowner can afford. For availing the loan, a homeowner needs to offer income proof, complete and accurate financial statement including details of income and expenses. This document will specify that homeowner is eligible of affording the new and lower payment.
Nowadays, in the internet world, loan modification software is getting popular among both modification companies and homeowners. This software is backed with a variety of features.